Wellington, Dec 24 NZPA - New Zealand and Fiji were today preparing to bring home their senior diplomats after last night's showdown threw the relationship between the two countries into crisis.

Fiji's self-appointed prime minister Voreqe (Frank) Bainimarama provoked it by expelling New Zealand's acting high commissioner Caroline McDonald.

Within two hours, Fiji's acting high commissioner Ponsami Chetty had been given his marching orders.

They were both given a week to leave.

Despite statements to the contrary over the last 48 hours, Cdre Bainimarama carried out his threat to expel Ms McDonald in retaliation for the Government's refusal to grant a visa to a Fijian student who is the son of a senior official in the president's office.

He had been clearly warned of the consequences by Foreign Minister Murray McCully.

"From day one we have had nothing but threats and ultimatums," Mr McCully told reporters last night.

"This government has no intention of making concessions while having a gun pointed at its head."

He said there was no basis for the action against Ms McDonald and it was a direct retaliation for the Government refusing to accede to an ultimatum.

Cdre Bainimarama has become increasingly irritated by the travel sanctions imposed on members of his government, the military, and their relatives.

They were put in place soon after he led the coup that overthrew Fiji's elected government two years ago and he has persistently complained about them.

Mr McCully said he tried to work constructively with Cdre Bainimarama but failed to head off the breakdown in diplomatic relations.

"The New Zealand Government is disappointed but not surprised by this action," he said.

"The precise allegations against her are not clear but any allegation she has not conducted herself appropriately is of course quite false."

The deterioration in the relationship has come as Pacific Island Forum leaders prepare to meet in Papua New Guinea next month to assess the situation in Fiji and look for ways to advance its timetable for democratic elections.

It was supposed to hold them by March next year, but Cdre Bainimarama has thrown up problems which are delaying the process.

NZPA PAR pw kc